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IMNSHO, that list of preferred formats is old and out of date. I find that ePub gives me the best overall results when converting to other formats such as AZW3/KF8 or KFX. I seldom convert to other formats.
MOBI/AZW is a old format with very limited formatting capability (a subset of HTML3). LIT is slightly better but not by much. Of course, this may make them easier to convert.
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